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Deutsche Bank has narrowed the list of companies for its IT outsourcing contract to IBM and CSC Ploenzke, the German subsidiary of the IT services and consulting company Computer Sciences (CSC).

On Wednesday, Deutsche Bank said CSC and IBM will enter into a due diligence phase. One of the two IT service providers will receive the contract, first announced in April. "We expect a decision by the end of the third quarter," a bank spokesman said.

The initial list of IT service providers included Electronic Data Systems (EDS), Accenture and T-Systems International, according to German media reports.

Aimed at reducing IT costs, the outsourcing contract involves taking over the operations of Deutsche Bank's data centres and smaller server sites in Germany, Belgium, Italy, Luxembourg, Poland, Portugal and Spain. Around 1,000 people work at these sites. The spokesman declined to provide financial details.

CSC Ploenzke recently entered into a due diligence phase for a contract with the German armed forces.

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